"But as excitement grows, so do warnings the sector may be heading for a bubble - and that its potential burst could have serious consequences for businesses around the world and in Germany. Warnings that AI could be a bubble is no longer confined to fringe voices. Leading figures in tech and finance from Sam Altman (OpenAI) to Mark Zuckerberg (Meta) have publicly discussed the possibility of a market correction."
"According to a new study by Germany-based insurance giant Allianz, if AI euphoria were to come to an abrupt end, around 4,000 insolvencies could be expected in Germany alone. This scenario would hit start-ups and tech-driven companies hardest, but the ripple effects would be expected to impact the broader economy. Allianz expects a global increase in corporate insolvencies in 2026, marking the fifth consecutive year of rising bankruptcies."
Major financial and tech figures are warning that rapid AI-driven investment growth may be forming a bubble with potentially severe consequences. Deutsche Bank flagged concerns that the AI boom could mask US economic stagnation. Allianz projects that an abrupt end to AI euphoria could produce about 4,000 insolvencies in Germany and expects global corporate bankruptcies to rise in 2026, a fifth consecutive year of increases. Insolvencies in Germany are forecast at 24,500 next year with declines expected from 2027. Start-ups and tech-driven firms face the highest risk, alongside threats from trade conflicts and oversupply of vulnerable new companies.
Read at The Local Germany
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